Mutuality of Obligation


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Mutuality of Obligation

The state in which both parties to a contract are required to perform some service. For example, one party may make a widget and the other may pay for it. Mutuality of obligation is one of the conditions that must exist for a contract to be legal and enforceable.
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References in periodicals archive ?
The court held that the tribunal had failed to consider fully whether the evidence surrounding the situation showed sufficient mutuality of obligation between Franks and Reuters to create an implied employment contract.
The doctrine of mutuality of obligation requires a contract to provide that at least some of the terms may be enforced by one party against the other.
AIf an employment tribunal had to consider a dispute about a person's employment status, it would take into the following factors: * The method of pay * What was the purpose and intention of the parties * Did or does the person only do work for that organisation * Was there fixed hours and regular work provided * Was the person integrated into the organisation * Was there any financial risk involved * Was there mutuality of obligation -this perhaps the most important factor Q What does 'mutuality of obligation' mean?